Decontrol of diesel prices unlikely

NEW DELHI: The Centre has assured Trinamool Congress that deregulation of diesel prices would not be carried out soon, advertising its lack of resolve for tough reform measures. A Trinamool Congress leader told ET that minister of state in the PMO V Narayansamy has conveyed to the party that de-regulation of diesel was not government's priority.

State-controlled oil companies had lost Rs 80,000 crore in the year ended March 31 on account of selling diesel below market prices. According to the latest estimates, oil companies have under-recoveries of Rs 1,38, 400 crore.

The Trinamool Congress had gone on the offensive soon after a junior petroleum minister referred to the 'in-principle decision' to decontrol the price of diesel. "We are opposed to de-controlling of diesel price. The price of diesel affects a large section of the population. People, who are already reeling under the impact of price rise, will have to be insulated. Our party will not allow any hike in the price of diesel," Trinamool leader of the Lok Sabha Sudip Bandopadhyay had said.

Complicating matters for the government, the Nationalist Congress Party, too, on Wednesday announced its plans to hit the streets against the move. The working committee of the party, which met in New Delhi, also announced to hold a rally in the Capital on May 16, seeking lifting of ban on export of agricultural commodities. Talking to reporters after the meeting, NCP leader DP Tripathi said NCP will hold "a massive rally at Jantar Mantar in Delhi to mobilise farmers from across the country." Tripathi said NCP wanted curbs on export to be done away with and MSP on various commodities to be increased.